Tesla Model 3 car is one of the crucial car model supporting the growth and development of the company since its announcement. The last one year Tesla has been trying hard to meet to the production target for Model 3 but failed continuously due to unforeseen circumstances. This isn’t the first time that the car developing company failed to meet their target production of producing 5000 cars per week as announced by the CEO Elon Musk. The goals were again pushed by the company to be achieved by the end of March but according to the recent announcement, it is pushed further until the end of June. Until the end of the fourth quarter, Tesla managed to produce only 1550 cars of the Model 3s and send it to their owners. Elon Musk has termed production hell to the issues that the company is currently facing and suffered in the past at their Fremont, California auto assembly plant and battery plant located in Nevada known as Gigafactory.
Model 3 car is considered to reach the mass market and involved huge investments by the company for its development since its launch. This car manufacturing is supported by the Tesla-brand solar roofs and their storage batteries which are produced in-house in another factory. The statistics of sales and revenue related to their storage batteries indicate a slow-down and the production of the roofs indicate that they are still in their development stage in the research and development department. The company is currently encountering tremendous pressure from the Wall Street and investors in order to execute their plans relating to the production of their much promising car model. This resulted in the market capitalization of $53 billion with the company but still, there are questions arising by looking at the current market position of the company related to the possibilities of the investors to be able to fulfill the requirement of the company in near future.
The company made an announcement in relation to the delivery of their Model X luxury car and Model S which increased nearly by 9 percent and they manage to deliver 13,120 and 15,200 cars respectively of both models. In total, the car manufacturing company managed to deliver 33 percent more cars than the previous year with 101,312 cars. The previous year’s track record of Tesla indicates that there is a serious issue in the development and assembly of their Model 3 cars which are leading to their continuous delay in fulfilling their commitment in relation to the production. But if the problem continues then there are high chances that it would lead to another serious problem for the company.